Increase in India's foreign exchange reserves and bank deposits, RBI continues liquidity absorption in weekly supplement

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Highlights

In the week ending July 10, 2026, India's foreign exchange reserves rose by ₹15,619 crore (USD 964 million) to a new high.
As of June 30, 2026, total deposits of scheduled commercial banks reached ₹26,538,493 crore and bank credit stood at ₹21,928,365 crore, with annual credit growth at 18.6 percent.
During July 6-12, 2026, RBI's net liquidity absorption ranged from ₹123,949 crore to ₹171,611 crore, highlighting a clear focus on controlling liquidity surplus.

This article was translated from the original. Read the original version by our correspondent here.

Weekly Data on Reserves and Banking Trends

As reported in the weekly statistical supplement released by the Reserve Bank of India, in the week ending July 10, 2026, India's total foreign exchange reserves increased by ₹15,619 crore, or USD 964 million. This increase includes a weekly rise of ₹14,078 crore in foreign currency assets and ₹1,235 crore in gold, while SDRs and the reserve position in the IMF also saw limited gains.

As of June 30, 2026, total deposits of scheduled commercial banks reached ₹26,538,493 crore, with a fortnightly increase of ₹696,805 crore. During the same period, bank credit rose to ₹21,928,365 crore, showing a fortnightly increase of ₹381,249 crore and an annual growth of 18.6 percent.

Money stock M3 reached ₹31,887,695 crore as of June 30, 2026. This reflects a fortnightly growth of 2.1 percent, a fiscal year-to-date increase of 3.5 percent, and an annual growth of 13.0 percent, mainly supported by time deposits and bank credit to the commercial sector.

Liquidity Management and Policy Signals

Between July 6 and July 12, 2026, RBI's liquidity operations continued to show net absorption. On July 10, 2026, net absorption stood at ₹123,949 crore, while on July 11 and 12, it remained at ₹171,611 crore and ₹171,544 crore, respectively.

These figures indicate that the central bank continues to absorb surplus liquidity from the system through the Standing Deposit Facility and other operations, even as deposits, credit, and broad money supply in the banking system continue to expand. The supplement also notes that the banking data includes the impact of a non-bank merger into a bank in 2023, and that the definition of a fortnight has been revised from December 15, 2025, under the Banking Laws (Amendment) Act, 2025.

Our previous report detailed the compounding order issued by RBI regarding FEMA violations related to foreign investment by Apothecon Pharmaceuticals Private Limited, explaining the implications of closure of further investigation after settlement of procedural lapses such as delays in reporting/share allotment, failure to file required forms (like ARF, FCGPR, FLA), and issues related to prior approval.

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